Norsk Tipping penalised for NOK 25 million payout error

Jade Denosta July 18, 2024

Norway’s state-owned gambling operator Norsk Tipping, is under scrutiny after a player at its KongKasino online platform was mistakenly awarded NOK 25 million (approximately €2.1 million). The honest player promptly notified the company and returned the entire sum.

Norsk Tipping attributed the hefty payout error to an unexpected technical glitch. The company subsequently reported the incident to the Norwegian Lottery Authority. Upon investigation, insufficient security measures were discovered in KongKasino’s prize payout mechanism. This, according to the regulator, violated the Gambling Act. Consequently, Norsk Tipping is facing a potential fine of NOK 4.5 million (€382,158) for the significant error, especially considering it occurred in a game known to carry a high risk of addiction.

Norsk Tipping has responded by implementing stricter security protocols and additional checks for all prizes exceeding a certain amount. The company has until 12 August to address the regulator’s notice, after which the Norwegian Lottery Authority will determine the final penalty.

Gambling issues in Norway

The University of Bergen conducted a study that highlighted the potential dangers of gambling, particularly in games with tempting jackpots. The study revealed that approximately 23,000 Norwegians are struggling with problem gambling. At the same time, an additional 93,000 are at risk of developing gambling-related issues. The figures from 2019 showed higher numbers, with about 55,000 problem gamblers and 122,000 individuals at risk.

According to the study, around 2.1 percent of players displayed problematic behaviour. The survey, conducted in Autumn 2022 and involving 30,000 residents, received responses from approximately 7,400 individuals. The report also brought to light that the risk of being a problem or moderate-risk gambler was more prevalent among men, individuals with lower education and income levels, and those born outside of Norway. Another key finding is that the most common reasons cited for gambling were “for fun” and “to win”. The report further shows that casino games categorised as higher-risk activities, have stricter limitations on winnings compared to losses and this of course minimises potential gambling harm.